This morning Air Transport Services Group, $ATSG announced that they have reached an agreement with Amazon Fulfillment Services..(an ‘affiliate’ of Amazon..it’s Amazon dammit) to operate run an air cargo network for Amazon within the United States.
The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc. by ATSG’s Cargo Aircraft Management (CAM), the operation of the aircraft by ATSG’s airlines, ABX Air and Air Transport International, and gateway and logistics services provided by ATSG’s LGSTX Services. The duration of the 20 leases will be five to seven years; the agreement covering operation of the aircraft will be for five years.
Aside from the operation agreements, Air Transport also agreed to allow Amazon warrants to acquire about 20% of ATSG’s common shares at $9.73/share over a five year period.
Pretty much Amazon will own ATSG in five years..it’ll happen.
Air Transport Services Group $ATSG is up nearly 24% today so far, while Amazon $AMZN is down almost 1.5% .. fun stuff.
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